EUR/GBP struggles amid risk off mood

A risk-off impulse keeps safe-haven peers rising, as geopolitical US-China frays keep traders more cautious. At the time of writing, the EUR/GBP is trading at 0.8350.

The EUR/GBP pair is still maintaining a kind of defensive stance as sellers eye a break below 0.8346. The RSI in the EUR/GBP daily chart confirms the downward bias. The pair extended its losses in the week, falling for two successive days and challenging the 0.8345 July 28 low, which, once broken, would bring about other losses.

The EUR/GBP is downward biased once the exchange rate tumbled below the daily EMAs, particularly the 200-day EMA on July 26. Since then, the cross remains range-bound in the 0.8330-0.8400 area, unable to crack any of the up/down boundaries, despite that the Relative Strength Index (RSI) is headed downwards, which might open the door for lower prices.

Therefore, the EUR/GBP first support would be the S1 daily pivot at 0.8351. Once cleared, the next support would be the S2 pivot point at 0.8329, followed by the 0.83000 figure.